25 September 2017 – Eje Prime
Vitruvio has completed its corporate operation. On 13 September, the Socimi finalised the merger by absorption of Consulnor Patrimonio Inmobiliario, as agreed at the General Shareholders’ Meeting in June. In this way, Consulnor Patrimonio Inmobiliario has transferred all of its assets to Vitruvio, according to sources at the company. Following this change in structure, the Socimi will see its revenues soar next year to €6 million and its Board of Directors will change.
Following the merger, Vitruvio will manage a portfolio of real estate assets with a gross value of €103 million and will generate an estimated turnover of €5.2 million for this year. Thanks to the new assets, the company will have greater capillarity in the country and a more diversified portfolio of properties; it will also see an increase in its average profitability.
According to both groups, the operation will result in growth in terms of gross assets of almost 70%, “with a significant increase in revenues and profitability for shareholders”. Moreover, the company has highlighted a series of advantages that the merger of the two groups generates, including an increase in the shareholder base.
“The incorporation of Consulnor Patrimonio Inmobiliario brings with it the entry of around 70 new shareholders to the Socimi’s structure, including some institutional players, which means an increase in the marketability of the shares”, say sources at Vitruvio. Another key to the merger, according to the company, is the increase in turnover, which will result in “guaranteeing the remuneration policy for shareholders” (…).
The operation has been articulated through a €16.29 million capital increase in Vitruvio, through the issue of 1,629,907 new shares of the same class as those already in circulation with a nominal value of €10. Those shares have been issued at an issue premium of €3.20 per share and have been subscribed by the shareholders of Consulnor Patrimonio Inmobiliario. Following the merger, the market capitalisation of Vitruvio will be set at €64 million.
In terms of assets, on 25 May, Vitruvio subscribed to an “exclusive and binding” agreement to obtain a building for hotel use in Madrid for a value of between €11 million and €12 million. Although the company has not provided any more details about the operation, it has explained that the estimated annual rent from the property will amount to more than €650,000, “which represents a net return of more than 5.55%” (…).
New Board of Directors
As part of the agreement between Vitruvio and Consulnor Patrimonio Inmobiliario, the Board of Directors of the resulting company, which will retain the name Vitruvio, will result in the entry onto the Board of four new members. Most notably, Pablo de la Iglesia, Director General of Consulnor, will joins the Board of Directors of Vitruvio, having worked for other companies such as Barclays and Jopa Family Office.
José Antonio Torrealba will also have a seat on the Board of Vitruvio (…). José Ignacio Iglesias will be the representative of the Voluntary Social Welfare entity Araba Eta Gasteiz Aurreski Kutxa II (…). Finally, the fourth new member of the board will be Sergio Álvares, who is also an existing board member of Consulnor Patrimonio Inmobiliario.
Original story: Eje Prime (by C. Pareja)
Translation: Carmel Drake